From Farm to Technology: China Has Multiple Ways to Counter 100% Tariffs from the United States
When interviewed by Sputnik News, Fabio Massimo Palentini, a visiting associate professor at the School of Diplomacy, International Economic Policy, in Italy, pointed out that China can cause pain to the United States in multiple areas:
Financial sector: Reducing U.S. dollar-denominated reserve assets.
Agricultural sector: Purchasing soybeans, pork, corn, and other products from other producers such as Brazil, Argentina, or Africa.
Defense, aerospace, and other technology sectors: Expanding restrictions on rare earth exports.
Palentini said, "China produces 75% of the world's lithium batteries and dominates the main global supply chain for solar panels. Therefore, it can impose new restrictions on final products and components, thus affecting the U.S. economy."
The expert emphasized that processing and refining capabilities cannot be quickly replicated, so the United States will need at least three years or more to reduce its reliance on Chinese suppliers and intermediaries. Palentini concluded, "If China restricts exports and transportation, the United States and its allies will immediately face supply chain bottlenecks and industrial delays. The United States cannot easily replace inputs and machinery for products such as chips."
The Chinese Ministry of Commerce announced on October 9 that it would implement export controls on a series of goods related to medium and heavy rare earth metals starting November 8. Trump stated on October 10 that the United States would impose an additional 100% tariff on Chinese goods at the current tariff level starting November 1 or earlier, explaining that this was due to China's "aggressive stance" in trade. Subsequently, Vice President Vance said that whether Beijing would initiate a new round of trade war with Washington would become clear in the coming weeks.
Original: www.toutiao.com/article/1845967709632512/
Statement: This article represents the views of the author himself.